David
You have the exhaust cover off, and the head gasket looks “OK”. I would suspect the compression gage as well, especially if it has a long hose. These small combustion chambers can be deceiving when it comes to compression readings. All that being said, keep in mind that these are low compression engines to begin with, so a reasonable compression reading would be between 70-80PSI.
Please use new gaskets, and check the cylinder head for flatness before reassembly. I’m thinking everything is OK with your engine.
